PC Connection, riding high on a 12.1% increase in government and education sales, has reported a 5.6% boost in third-quarter sales to $371.1 million.
In addition, the technology DMer posted net income of $1.9 million, compared with $2.8 million for the same period last year. The earnings were affected by special charges, including some related to management restructuring.
Selling, general and administrative grew by almost a full percentage point to 10.1% due to higher advertising costs and increased investments in systems and the firm’s services business.
Sales to government and education customers rose to $87.2 million. This reflected a 23% increase in sales to the federal government.
Small business sales grew by 3.9% to $203.5 million, compared with the same period last year, but decreased by 1.8% from the prior quarter. Revenue from large customers rose to $80.4 million, a 3.8% increase over the third quarter of 2004, and 2.5% increase over this year’s second-quarter sales.
Sales of notebooks and PDAs, while the largest product category, fell to 19.4% of total sales, compared with 21.5% last year. Desktop computers and servers remained steady at 13.9%.
Meanwhile, the firm recorded a 17.2% increase in accessories sales, and a 16.2% boost in storage devices. Sales of net/com products rose by 12.9%.
Net sales for the first nine months totaled $1.04 billion, compared with $1.01 billion during 2004.
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